DXC Technology (NYSE:DXC) Posts Earnings Results, Beats Expectations By $0.07 EPS

DXC Technology (NYSE:DXC) posted its quarterly earnings results on Thursday. The company reported $0.77 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.07, FiscalAI reports. The company had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.17 billion. DXC Technology had a return on equity of 17.01% and a net margin of 0.14%.The firm’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.84 EPS. DXC Technology updated its Q1 2027 guidance to 0.400-0.400 EPS and its FY 2027 guidance to 2.400-2.900 EPS.

Here are the key takeaways from DXC Technology’s conference call:

• DXC missed Q4 organic revenue guidance by roughly $75M (Q4 revenue $3.1B) and guided FY2027 organic revenue down 3%–5% (Q1 down 6.5%–7.5%), signaling continued top‑line pressure into the year.
• Management is driving an AI-led transformation and launched Fast Track offerings — notably CoreIgnite and DXC OASIS — with OASIS live with 10 customers and already influencing a recent large insurer win, creating potential for recurring, higher‑margin revenue.
• In Q4 DXC advanced to finals on ~$2B of large opportunities but only won 32%, lost 40% and has 28% outstanding; management attributes losses to capability/industry‑specific execution gaps (not pricing) and is applying lessons to improve close rates.
• Financial discipline continues — FY2026 free cash flow was $713M (Q4 $110M), net debt down ~ $1.1B over two years, and DXC plans ~$400M to retire bonds plus $250M of buybacks in FY2027, supporting capital allocation and balance‑sheet strength.

DXC Technology Stock Performance

DXC stock traded down $2.57 during midday trading on Friday, reaching $9.45. 16,627,765 shares of the company’s stock traded hands, compared to its average volume of 3,666,390. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.91. DXC Technology has a 52-week low of $8.40 and a 52-week high of $17.26. The stock has a market cap of $1.60 billion, a P/E ratio of 157.42 and a beta of 0.85. The stock’s 50-day moving average is $12.24 and its 200 day moving average is $13.41.

Institutional Trading of DXC Technology

Hedge funds and other institutional investors have recently bought and sold shares of the stock. EverSource Wealth Advisors LLC raised its stake in DXC Technology by 240.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,737 shares of the company’s stock worth $27,000 after acquiring an additional 1,227 shares during the period. CIBC Private Wealth Group LLC increased its stake in shares of DXC Technology by 13,258.8% in the fourth quarter. CIBC Private Wealth Group LLC now owns 2,271 shares of the company’s stock worth $33,000 after purchasing an additional 2,254 shares in the last quarter. Headlands Technologies LLC purchased a new position in shares of DXC Technology during the 2nd quarter valued at $39,000. Caitlin John LLC boosted its holdings in DXC Technology by 358.0% in the 4th quarter. Caitlin John LLC now owns 3,224 shares of the company’s stock worth $49,000 after buying an additional 2,520 shares during the period. Finally, Parallel Advisors LLC boosted its holdings in DXC Technology by 36.9% in the 3rd quarter. Parallel Advisors LLC now owns 8,513 shares of the company’s stock worth $116,000 after buying an additional 2,295 shares during the period. Hedge funds and other institutional investors own 96.20% of the company’s stock.

Key Headlines Impacting DXC Technology

Here are the key news stories impacting DXC Technology this week:

• Positive Sentiment: DXC beat fourth-quarter adjusted earnings estimates, reporting non-GAAP EPS of $0.77 versus $0.74 expected, while free cash flow rose to $713 million for the full year and the company repurchased $250 million of stock. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Neutral Sentiment: The company also posted strong bookings of $3.3 billion, with a book-to-bill ratio of 1.07x, suggesting demand was still adequate even as revenue softened. DXC Technology Reports Fourth Quarter and Full Fiscal Year 2026 Results
• Negative Sentiment: Revenue fell 1.2% year over year in the quarter, and management signaled ongoing weakness in demand, which tempered the benefit of the earnings beat. DXC Technology Q4 Earnings Beat Estimates, Revenues Decline Y/Y
• Negative Sentiment: FY2027 guidance came in below Wall Street expectations, with management forecasting organic revenue decline of 3% to 5% and EPS of $2.40 to $2.90 versus a higher consensus estimate, raising concerns about next year’s growth trajectory. DXC forecasts FY 2027 organic revenue decline of 3%-5% with EPS of $2.40-$2.90
• Negative Sentiment: Reports that DXC employees have begun strike action add an operational risk that could further weigh on sentiment if service disruption continues. DXC employees commence strike action

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on DXC shares. Stifel Nicolaus set a $12.00 target price on shares of DXC Technology in a report on Friday. Zacks Research lowered shares of DXC Technology from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 3rd. TD Cowen lowered their price objective on shares of DXC Technology from $15.00 to $14.00 and set a “hold” rating on the stock in a research report on Monday, April 6th. BMO Capital Markets boosted their target price on shares of DXC Technology from $15.00 to $17.00 and gave the company a “market perform” rating in a research note on Tuesday, February 3rd. Finally, Wall Street Zen cut DXC Technology from a “buy” rating to a “hold” rating in a report on Saturday, March 28th. Eight equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, DXC Technology currently has a consensus rating of “Reduce” and a consensus price target of $14.38.

About DXC Technology

DXC Technology, headquartered in Tysons Corner, Virginia, is a global leader in IT services and solutions. The company was formed in 2017 through the merger of Computer Sciences Corporation (CSC) and the Enterprise Services business of Hewlett Packard Enterprise, combining decades of experience in consulting, systems integration and managed services. Since its inception, DXC has focused on helping clients modernize IT environments and drive digital transformation across their organizations.

DXC Technology’s core service offerings encompass cloud and platform services, applications and analytics, security, and workplace and mobility solutions.